Argonaut Gold and Alio Gold announce friendly at-market merger

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Argonaut Gold and Alio Gold announce friendly at-market merger

Argonaut Gold and Alio Gold have agreed to join forces to create a diversified intermediate producer with assets in Canada, the US and Mexico.

“This is a transaction which makes sense for both sets of shareholders,” said Pete Dougherty, President & CEO of Argonaut. “Combining complementary assets into one larger, more relevant company generates significant synergies. With a solid production base of over 235,000 gold equivalent ounces expected this year, a strong balance sheet and strong cash flow generation at current gold prices, we will be well positioned to evaluate and execute on growth opportunities from within the combined company’s development asset portfolio.”

Argonaut Gold owns the La Colorada mine in Sonora, Mexico, and the El Castillo and San Agustin mines, which together form the El Castillo Complex in Durango, Mexico. It also has advanced exploration projects including the Cerro del Gallo project in Guanajuato, Mexico, the San Antonio advanced exploration project in Baja

“This is a transaction which makes sense for both sets of shareholders”

California Sur, Mexico and the Magino project in Ontario, Canada. Alio Gold’s major asset is the 100% owned Florida Canyon Mine in Nevada, USA. The company also owns the development stage Ana Paula Project in Guerrero, Mexico. “This transaction is very positive for Alio Gold shareholders, as it maintains meaningful exposure to the turn-around underway at the Florida Canyon gold mine and the potential of the Ana Paula project, while removing the substantial risk that is inherent in a one-mine company,” said Mark Backens, President and CEO of Alio Gold. “The combination with Argonaut benefits our shareholders through participation in a larger, well-funded, and more diverse company that has the ability to invest in high-return projects across the portfolio to unlock a significant value re-rating. Pete and the Argonaut team have a long track record of delivering value from mines very similar to Florida Canyon and we have no doubt that success will continue to benefit all stakeholders.”